Trusted by More than 2,000,000 Canadians since 2016

Home Equity Loans

  • chBorrow up to $1 Million using the equity in your home
  • chRates starting from 4%
  • chGet offers from Top Home Equity Lenders in Canada
up Last updated

July 30, 2025

up Written by:

Amy Orr

up Reviewed by:

Jenna West

Home Equity Loans in Canada

Did you know you can borrow as much as 80% of your home’s market value with a home equity loan? Borrowing money from your home is one of the best ways for Canadian homeowners to secure a low interest rate, consolidate high interest debt, or finance a large purchase, investment, or project via a lump sum loan.

Smarter Loans has simplified the home equity borrowing process by comparing the best loan options for you. Need to borrow $10,000 or more? Smarter Loans can help you find the right home equity lender to get your loan approved. Save money by borrowing against your home’s equity and accessing more money than you could with unsecured debt.

Check out our roster of qualified loan providers below.

Compare Lenders

AMOUNT
$50K - $10M
INTEREST RATE
From 4.09%
TERMS
6 - 60 Months
AMOUNT
$15K - $10M
INTEREST RATE
6% - 16%
TERMS
1 - 5 Years
AMOUNT
$20K - $100M
INTEREST RATE
Varies
TERMS
12 - 60 Months
AMOUNT
$20K - $10M
INTEREST RATE
Varies
TERMS
6 Months - 5 Years
AMOUNT
$50K - $100M
INTEREST RATE
From 4.09%
TERMS
6 Months - 10 Years
AMOUNT
$500 - $150,000
INTEREST RATE
9.99% - 34.99%
TERMS
9 - 240 months
AMOUNT
$50K - $10M
INTEREST RATE
Varies
TERMS
1 - 10 Years
AMOUNT
$50K - $10M
INTEREST RATE
From 4.00%
TERMS
5 Years
View More Lenders

What Is a Home Equity Loan?


A home equity loan is a form of secured loan; the security in question is the equity in your home, which you may have because of an increase in the market value of your home over your original purchase price, from paying down your original mortgage, or from investing in your home.

fixed interest ratevariable ratespersonal loanunsecured loans

How Does a Home Equity Loan Work?


  1. Compare home equity loan providers and apply to your preferred lender
  2. The lender assesses your loan application and either approves or declines it
  3. In the case of approval, you receive a lump sum to use as you wish
  4. You make regular payments until the loan is totally paid off

How Much Can You Borrow with a Home Equity Loan?


Current Property Value - Outstanding Mortgage Balance = Home Equity

Why Take Out a Home Equity Loan?


To Consolidate Debt

consolidating debtreverse mortgage

To Pay for Home Renovations

making some improvements to your home

To Fund Large Purchases or Investments

second property in Canada

To Enjoy Flexible Repayment Terms

cash flow during tough financial times, such as during job loss

Home Equity Loan Terms and Costs


Loan Amount

Loan Term

Payment Frequency

Interest Rate

prime rate

Set-Up Cost and Fees

Switching Costs

Find the Right Loan for Your Needs


Second Mortgage

Borrow up to 80% of your home's appraised value (less your remaining mortgage balance)

Reverse Mortgage

Borrow up to 55% of your home's appraised value (less your remaining mortgage balance)Apply for a reverse mortgage here!

Home Equity Line of Credit (HELOC)

Borrow up to 65% of your home's appraised valuehome equity line of credit

Home Equity Loans vs HELOCs


Whether you opt for a one-time payment directly into your bank account, or a revolving line of credit, both home equity loans and home equity lines of credit are a convenient, flexible way to borrow money from your home.

Home Equity Loans

  • May have either a variable interest rate or fixed interest rate
  • Monthly payments typically include a combination of principal and interest amounts
  • You must immediately begin making regular repayments on the lump sum of funds you receive

HELOCs

  • Come with a variable rate of interest
  • Monthly interest-only payments are typically required on amounts you've borrowed but have yet to repay
  • You can choose when and how much of the available funds you use, up to the fixed credit limit

Home Equity Credit Limit and Your Mortgage

Home Equity Loan Pros and Cons


Pro: You can put home equity debt to work for you

Con: Interest-only payments can get out of hand

Pro: Home equity can help finance a second home

Con: Equity-based personal loans have gotten tougher to qualify for

Pro: You can often still get a home equity loan with bad credit

Con: Home equity and HELOC rates can be higher than mortgage loans

How Home Equity Borrowing Works with Smarter Loans


  • Debt consolidation loan
  • Reverse mortgage

Pre-Apply for a Home Equity Loan in 3 Easy Steps

1. Take 30 seconds to complete our application online.2. We find you a lender. 3. You get your loan.

Home Equity Loan Frequently Asked Questions


What can I expect when I apply for a home equity loan?

What's the average home equity loans Canada rate?

What are the eligibility requirements for borrowing against home equity?

  • Proof of ownership of your home
  • Mortgage details
  • A recent home appraisal of the market value of your home

How can I use a HELOC to purchase a home?

How does a reverse mortgage work?

Pre-Apply for a Home Equity Loan Here

Expert Review & Editorial Standards

This page was researched, written, and reviewed by financial professionals with expertise in Canadian lending regulations. All information is regularly updated to reflect current rates, terms, and regulatory changes.

Jenna West
Reviewed By

Jenna West

Financial Writer & Content Director

Jenna has covered the Canadian FinTech and consumer lending industry since 2017. She specializes in regulatory updates, consumer protection, and helping Canadians navigate complex financial products.

  • 8+ years analyzing Canadian consumer lending
  • Monitors FCAC and provincial regulatory changes
  • Specializes in personal loans and alternative lending
Amy Orr
Written By

Amy Orr

Financial Content Specialist

Amy is a financial writer with 10+ years covering Canadian, U.S., and U.K. financial markets. She holds a Masters in Finance from the University of Edinburgh Business School and formerly worked in the hedge fund sector.

  • Masters in Finance, University of Edinburgh
  • Former hedge fund professional
  • Published in major financial publications

About Smarter Loans

Canada's independent lending comparison platform since 2016. Trusted by over 2 million Canadians and recognized by the Toronto Star as "the GPS of FinTech Lending." Featured in the National Post and major Canadian publications.

Verified Lenders Only All lenders verified for proper licensing and regulatory compliance
Editorial Independence Content created independently from business relationships
Regular Updates Content monitored and updated for rate changes and new regulations
2M+ Canadians Served Helping Canadians compare loans since 2016

Our Editorial Process

Every page undergoes research, expert writing, fact-checking, and review by our Financial Content Director. We verify all rates, terms, and regulatory information against official sources including FCAC guidelines and provincial lending regulations.

Last Updated: July 30, 2025 | Next Review: Ongoing monitoring

Awesome G. profile pictureAwesome G.
04:46 26 Feb 25
I’m very honoured to shear my experience with this illustrious platform. To be able to systematically choose from a list optional to one’s profile without doing much leg work is truly rewarding. This platform allowed to expand my options and chose which lenders fit my profile, thank you and continue doing what you do best,, connecting people to available wealth opportunities.
Pat M. profile picturePat M.
03:10 26 Feb 25
Good place to get a loan
Chris “Stufphr” H. profile pictureChris “Stufphr” H.
02:07 26 Feb 25
When you feel in need of a loan do it smart and make it a Smarter Loans.
Dan Bott (. profile pictureDan Bott (.
01:41 26 Feb 25
Very Helpful, was assisted in a timely fashion and was ultimately able to receive assistance; I highly recommend!!!
joel K. profile picturejoel K.
22:59 25 Feb 25
I have recommended this place to many friends I feel that this company goes out of their way to help people that they can and they are very easy to work with
Nate C. profile pictureNate C.
13:22 27 Oct 24
This company is reliable, quick, and just has the best customer service and rates it is a easy process with quick results. Would definitely recommend to anyone that needs the help.
Vincent J. profile pictureVincent J.
07:08 23 Oct 24
Good place for borrowing a bit of money 😁
Kels H. profile pictureKels H.
06:41 23 Oct 24
Personally love this opportunity and app. Super convenient and easy to use and super awesome variety of great loans. Thanks so much guys for making such an awesome site and app and being there for me over the years. :)
Tara H. profile pictureTara H.
16:23 16 Oct 24
From beginning to end, my experience was great! Very professional and personable agents. They only asked questions that were needed for the loan and payments were extremely reasonable. Would recommend to anyone who needs emergency funds.
A S. profile pictureA S.
19:43 11 Oct 24
“ Thank you SO very much! My situation was tricky and you guys made the whole process so effortless. The way you guys handle the whole process so discreetly. That truly speaks to how well your office is run and the caliber of specialists who handled the processing of my entire loan!”

Why Choose Smarter Loans?

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